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Retail investors face a ban from crowdfunding platforms if they do not limit
their small business investments to a tenth of their wealth, according to
new rules announced today by the City watchdog.

The ruling is one of a collection of regulations drawn up by the Financial
Conduct Authority to crack down on the fledgeling crowdfunding industry, in
which small-time investors pool their cash to lend to or buy shares in a
start-up. The industry accounts for about £350 million of investment in
small businesses, circumventing the banking system.